Velosurance
Velosurance is a US specialty insurance program administrator that sells standalone bicycle insurance policies underwritten by Markel American Insurance to individual cyclists across all 50 states, Canada, and worldwide on request, distributed direct-to-consumer and through bike shop and cycling governing-body partners.
- Company typePrivate
- Founded2012
- HeadquartersFort Lauderdale, United States
- Headcount1–10
- GTM typeB2C
- OfferingServices
What Velosurance does
Velosurance is a US specialty insurance program administrator that sells standalone bicycle insurance policies to individual cyclists, operating across all 50 states and Canada with optional worldwide extension. The company is privately held, was founded in 2012 by cyclists Dave Williams and Denis Voitenko, and runs a small team (1–10 employees) out of Colorado Springs, Colorado. Its core product is a multi-risk physical-damage and theft policy underwritten by Markel American Insurance Company (A.M. Best 'A'), distinguished by agreed-value settlement (no depreciation), primary-policy status (claims do not affect homeowners premiums), permissive-use coverage, optional liability/medical gap/uninsured motorist add-ons, and optional competitive and worldwide extensions. Velosurance covers nine bike categories including Class 1–3 e-bikes at standard bicycle rates and competes primarily against homeowners riders, BikeInsure, and Sundays.
The business operates a hybrid distribution model: direct-to-consumer online quoting and binding through velosurance.com, inside sales via phone and live chat, a nationwide bike shop partner network that drives point-of-sale referrals and claims-side repair traffic, and three flagship governing-body partnerships (USA Cycling, USA Triathlon, IMBA) that channel discounted acquisition from organized cycling communities. Revenue is recurring, generated through annual policy premiums with flexible billing cadence (annual, 3/4/6-pay, monthly) and per-add-on premium uplift from optional modules; multi-bike bundling (10–15% off) and membership discounts (10% off, stackable up to 25% combined) are explicit retention and acquisition levers. Technology is a web-based quote and policy management platform with no mobile app, no public API, and no disclosed AI/ML capability — service differentiation rests on human-staffed phone and chat support, a focused product, and a curated partner ecosystem rather than on proprietary technology.
Strategically, Velosurance positions itself as the regulated and compliant specialist for emerging e-bike liability requirements (notably New Jersey's mandate) and as the endorsed insurer for licensed competitive cyclists, with an established but lean operating footprint that has not pursued external funding.
Velosurance firmographics
Firmographics- Name
- Velosurance
- Legal name
- Velosurance
- Website
- https://velosurance.com
- Company type
- Private
- Founded year
- 2012
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Velosurance is a US specialty insurance program administrator that sells standalone bicycle insurance policies underwritten by Markel American Insurance to individual cyclists across all 50 states, Canada, and worldwide on request, distributed direct-to-consumer and through bike shop and cycling governing-body partners.
- Ownership category
- akta.pro rank
Velosurance industry classification
Industry- Product category
- Bicycle Insurance
- NAICS
- Direct Property and Casualty Insurance Carriers (524126), Direct Insurance (except Life, Health, and Medical) Carriers (52412), Insurance Carriers and Related Activities (524)
- SIC
- Fire, Marine & Casualty Insurance (6331)
- akta.pro primary industry
- Vehicle Extended Warranty (VSC) & Mechanical Breakdown Insurance (MBI) (FSAJALAA)
Keywords
Where Velosurance is headquartered
LocationHeadquarters
- HQ city
- Fort Lauderdale
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Velosurance business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure, Others
Revenue model
- Bicycle Insurance Premiums (Physical Damage + Theft): The primary revenue stream is annual insurance premiums charged for physical damage, theft, and related coverage on bicycles. Premiums are calculated based on the bike's agreed value, category (casual, competitive, e-bike), the policyholder's location, and chosen deductible. Coverage includes accidental damage, theft, and loss in transit, with optional add-ons including liability, medical gap, and uninsured motorist coverage.
- Optional Coverage Add-ons: Optional coverage modules can be added to the base policy: third-party liability ($25K–$500K limits), medical gap payments ($1K–$10K), uninsured motorist ($1K–$10K), worldwide coverage (10% surcharge), and competitive use/race coverage. Each add-on generates additional premium revenue per policy.
- Multi-Bike Household Premiums: Households insuring multiple bikes on a single policy generate more premium per policy while the multi-bike discount (10–15% off) incentivizes bundling. This creates revenue efficiency and retention, as multi-bike households are less likely to split policies across carriers.
- Membership Discount Partner Revenue: Revenue is optimized through discount programs tied to cycling organization memberships (USA Cycling, USA Triathlon, IMBA). While discounts reduce per-policy revenue, they drive acquisition from organized cycling communities, lowering customer acquisition costs.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | Equipment-only coverage for casual use bikes (e.g., Trek FX 3 Disc, $1,000 value): ~$100/yr |
| Subscription | Monthly | Full four-coverage package: physical damage + theft + liability + medical + uninsured motorist |
| Subscription | Annual | E-bike coverage at standard bicycle rates (no e-bike surcharge) |
| Subscription | Annual | High-value carbon race bike coverage |
| Subscription | Annual | Multi-bike household discount: 10% off for 2 bikes, 15% off for 3+ bikes |
| Subscription | Annual | Membership discount: 10% off for USA Cycling, USA Triathlon, or IMBA members |
| Subscription | Multi-year contract | Flexible payment plans |
Go-to-market motion4 records
Distribution channels4 records
Marketing channels7 records
Velosurance product offering
Product offeringCore offering
Velosurance sells a standalone, primary bicycle insurance policy underwritten by Markel American Insurance Company, covering theft, crash damage, and transit loss at agreed value with no depreciation. The core Physical Damage product is supplemented by optional add-on coverages including third-party liability ($25K–$500K), medical gap payments, uninsured motorist coverage, competitive/race use, and worldwide extension. Policies are available for road, mountain, gravel, e-bike, triathlon, cargo, tricycle, recumbent, and commuter bicycles across all 50 US states and Canada.
Product overview
Velosurance is a national bicycle insurance specialist offering a standalone multi-risk policy underwritten by Markel American Insurance Company. The core product is Physical Damage Coverage providing theft and accidental damage protection at agreed value with no depreciation. This core is supplemented by four optional add-on modules: Third-party Liability Coverage ($25K-$500K limits), Medical Gap Payments, Uninsured Motorist Coverage, and Racing Coverage. The policy also offers optional International Coverage as a worldwide extension. Coverage is available for all bike types including road bikes, mountain bikes, gravel bikes, e-bikes (Class 1, 2, 3), cargo bikes, trikes, and recumbent bikes. The company operates through a network of partner repair shops and offers direct customer service via phone, email, and chat.
Differentiator
Problem solved
Functional benefit
Products and services
- Physical Damage Coverage
Quantifiable outcome
- No depreciation means a 5-year-old $5,000 bike pays $5,000 (minus deductible), vs. ~$2,500 actual cash value under typical homeowners policy after depreciation and deductible
- +3 more outcomes
Companies that use Velosurance
Customer profileNamed customers13 records
Segments6 records
Ideal customer profiles5 records
Velosurance technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature7 records
Velosurance partnerships and signals
Strategic signalPartnerships
Four partnerships are on record, tiered core and flagship.
- Bike Shops (Nationwide Partner Network)coreA nationwide network of partner bike shops (including bike shops, D2C brands, OEMs, and distributors) that promote Velosurance insurance to customers at the point of sale. Partners include the option to join via a form on velosurance.com/join. When a customer files a claim, Velosurance sends them to a partner shop for a repair estimate, creating a closed referral loop that drives customers back to the partner for service.
- USA CyclingflagshipUSA Cycling is the Olympic-recognized national governing body for competitive cycling in the United States, sanctioning road, mountain, gravel, cyclocross, BMX, and track events. Velosurance offers a 10% discount on the bicycle coverage premium for any active USA Cycling annual member. The partnership recognizes the engagement of licensed cyclists and supports the broader US cycling community.
- USA TriathlonflagshipUSA Triathlon is the Olympic-recognized national governing body for triathlon, duathlon, and multisport in the US, sanctioned by both the US Olympic & Paralympic Committee and World Triathlon. Velosurance offers a 10% discount on the bicycle coverage premium for active USA Triathlon Silver, Gold, or Platinum annual members. The partnership supports the triathlon community and their distinctive coverage needs (high-value bikes, frequent travel, race-day risk).
- International Mountain Bicycling Association (IMBA)flagshipIMBA is the largest off-road cycling advocacy organization in the world. IMBA members and local chapters fund trail building, defend public land access, and support trail stewardship networks. Velosurance offers a 10% discount on the bicycle coverage premium for active IMBA individual or family members. The partnership recognizes the contribution of IMBA members to the mountain biking community and aligns Velosurance with the trail advocacy movement.
Scale indicators3 records
Recent moves6 records
Expansion highlights5 records
Velosurance competitors and assessment
Company assessmentDirect peers
- BikeInsure: BikeInsure is a US specialty bicycle insurance provider offering equipment-only and broader coverage directly to cyclists. Velosurance maintains dedicated comparison pages against BikeInsure, indicating they compete for the same primary use case (individual cyclist equipment coverage) with materially overlapping product structures.
- Sundays Insurance: Sundays Insurance is a direct-to-consumer bicycle insurance competitor featured in Velosurance's own comparison content. They sell multi-risk bike policies online with similar positioning around agreed value, theft, and crash coverage, making them a direct head-to-head competitor for the same online shopper.
- Spoke Insurance: Spoke Insurance is a specialty bicycle and e-bike insurance provider offering online quotes and policies to individual cyclists and bike dealers. The product breadth and target market closely track Velosurance's, particularly around e-bikes and dealer partnerships.
- BikeGuard: BikeGuard is a niche bicycle insurance specialist providing theft and damage coverage to cyclists in North America. It competes for the same individual-cyclist online-buyer segment that Velosurance targets, though typically with narrower add-on coverage depth.
Broad incumbents
- Lemonade: Lemonade is a broad direct-to-consumer insurance carrier offering renters, homeowners, and pet policies that can cover bicycles as personal property (subject to sub-limits and exclusions). As a much larger digital insurer with strong brand recognition, Lemonade overlaps with Velosurance on the property-coverage side of bicycle risk and could pressure the niche with homeowners riders.
- Markel Insurance: Markel is the A-rated US insurance carrier that underwrites Velosurance's policies and operates broadly in specialty and recreational lines (marine, equestrian, motorcycles, recreation). Markel is both partner and a potential internal capability that could compete by offering its own bicycle program, which is a structural consideration for Velosurance.
- Progressive: Progressive is a large US personal-lines insurer offering home, auto, and recreational vehicle coverage that can include bicycles through homeowners endorsements. While not a specialty bicycle carrier, it competes for adjacent risks and could enter the specialty bicycle market directly, as it does for motorcycles and RVs.
Emerging players
- Velove: Velove is an emerging specialist offering bicycle and e-bike insurance with a digital quote flow. It targets overlapping buyer profiles — commuters, enthusiasts, e-bike owners — but with narrower distribution and product breadth relative to Velosurance.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks5 records
Key highlights7 records
Customer concentration
Velosurance social profiles
Digital presenceVelosurance financial estimates
Financial estimateRevenue estimate
Valuation estimate
Velosurance leadership team
Management profileNumber of profiles
Profiles2 records
Velosurance funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Velosurance M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Velosurance
What does Velosurance do?
Velosurance sells a standalone, primary bicycle insurance policy underwritten by Markel American Insurance Company, covering theft, crash damage, and transit loss at agreed value with no depreciation. The core Physical Damage product is supplemented by optional add-on coverages including third-party liability ($25K–$500K), medical gap payments, uninsured motorist coverage, competitive/race use, and worldwide extension. Policies are available for road, mountain, gravel, e-bike, triathlon, cargo, tricycle, recumbent, and commuter bicycles across all 50 US states and Canada.
Is Velosurance a public or private company?
Velosurance is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Velosurance founded?
Velosurance was founded in 2012. It employs 1 to 10 people.
Where is Velosurance based?
Velosurance is headquartered in Fort Lauderdale, United States, in the North America region.
How does Velosurance make money?
Four revenue lines are on record. Bicycle Insurance Premiums (Physical Damage + Theft) is the primary driver. The others are optional Coverage Add-ons, multi-Bike Household Premiums and membership Discount Partner Revenue.
Who are Velosurance's main competitors?
Direct peers on record are BikeInsure, Sundays Insurance, Spoke Insurance and BikeGuard. Broad incumbents are Lemonade, Markel Insurance and Progressive. Velove is listed as an emerging player.
Does Velosurance have an API?
No public API is recorded for Velosurance.
What industry is Velosurance in?
Velosurance's product category is Bicycle Insurance. Its primary akta.pro industry code is FSAJALAA, Vehicle Extended Warranty (VSC) & Mechanical Breakdown Insurance (MBI). Its NAICS code is 524126 and its SIC code is 6331.